The company ended up raising C$1,598,489.21 in their private placement. It was non-brokered, so the cost was low.
They issued 5,328,297 “units” at C$0.30, which includes a full warrant at C$0.45 for two years. The raise was lower than the initial C$1.7M announced, so now the dilution is just 7.4%. Prior to this financing the company only had 71,621,745 shares outstanding, a sign management has been very responsible with the share count and is below the threshold we look for in PAYDIRT (readers see section starting page 126).
Remember too there was heavy insider participation. Both CEO Mike Stark and VP-Exploration Greg Hahn invested $100,000 of their own money, and other members of management also participated. There are some brand new investors too, including a new fund (unnamed). Interest is growing in the still relatively unknown gold and silver explorer.
The company now has the funds for their first drill campaign of the year. We should see news on that soon.
The stock fell when the financing was announced in February but is now higher than the private placement price. This is a clear sign of strength. If you’re looking for shares, today is not a bad day to pick up some—the stock is falling, and the market cap is just C$31M. I remain overweight and am holding on tight to every share I’ve bought, as 2024 could be an exciting year for the company.
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